1 the melbourne review Vol 3 Number 2 November 2007 the melbourne review How can we improve teacher quality? Andrew Leigh Improving the quality of schooling is an effective way of boosting overall economic outcomes and helping the most disadvantaged. From both an eficiency and an equity perspective, policy makers should be concerned about the decline in the academic aptitude of the teaching workforce. They should also be aware that pay can make a difference. Overseas evidence suggests that introducing merit pay could potentially be a cost- effective way of raising teacher quality. U nless you skipped a lot of school, you probably spent over ten thousand hours in the classroom. So what do you remember most about it? If you’re like most of us, the answer rolls off the tongue: a great teacher. Moreover, the consensus on this subject among policy makers is the same. Whereas past decades saw policy makers focusing on class sizes and curriculum development, many researchers now agree that improving